International Accountancy Quiz Question from Test Bank

* mind 1 2. 5 appear of 2. 5 points The following inventory learning supra was taken from the records of BlobeKom Ltd. Historical live $12,000Replacement bell $ 9,000Expected change price $10,000Expected marketing woo $ 500Normal profit margin 10% of selling priceUnder U. S. GAPP, what should the Balance Sheet shroud for fund? coif Selected arrange $9,000 * apparent motion 2 2. 5 bulge of 2. 5 points How should the price of borrowing funds to acquire or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007? resolution Selected solve It should be added to the other costs of getting fixed summations to de limitine the amount for the relaxation canvas. * move 3 2. 5 break of 2. 5 points The following inventory information preceding(prenominal) was taken from the records of BlobeKom Ltd. Historical Cost $12,000Replacement Cost $ 9,000Expected selling price $10,000Expected selling cost $ 500Normal p rofit margin 10% of selling priceUnder IAS 2, what should the Balance Sheet report for Inventory? get along Selected state $9,500 * read/write head 4 2. 5 out of 2. 5 points Under IAS 16 (Property, Plant, and Equipment), subsequent reexamination decreases are tell Selected break up maiden recognized as a reducing in any related re paygrade surplus * headland 5 2. 5 out of 2. 5 points Which of the following is generally align about the differences amidst U. S. generally accepted account principles and IASB standards? Answer Selected Answer U. S. generally accepted accounting principles tends to be more rule-based, and the IASB standards tend to be principles-based. * interrogation 6 2. 5 out of 2. 5 points The Seventh Directive issued by the European Commission is a statement to the European Union (EU) members concerningAnswer Selected Answer amalgamate financial statements * inquiry 7 2. 5 out of 2. 5 points What basis does t he external Accounting Standards Board use in formulating its IFRS? Answer Selected Answer A mannikin of accounting principles * Question 8 2. 5 out of 2. 5 points What was the Norwalk Agreement? Answer Selected Answer A pledge in the midst of the Financial Accounting Standards Board in the U. S. and the IASB to make their reporting standards compatible * Question 9 2. 5 out of 2. 5 points How does IAS 34 (Interim Financial Reporting) differ from U. S. generally accepted accounting principles? Answer Selected Answer U. S. GAAP takes the lieu that interim periods are an integral lot of the full year. * Question 10 2. 5 out of 2. 5 points Which of the following statements is admittedly about accounting harmonizaiton?Answer Selected Answer All of the above are true about accounting harmonisation * Question 11 2. 5 out of 2. 5 points From a practical standpoint, what is the goal of accounting standards harmonization? Answer Selected Answer reduction the conflict among national accounting standards * Question 12 2. 5 out of 2. 5 points Which of the following inventory valuation methods unremarkably used in the U. S. is NOT allowed under IAS 2 (Inventories)? Answer Selected Answer last in first out * Question 13 . 5 out of 2. 5 points Why does the IASB believe that a principles-based approach to standard setting is superior(p) to a rules-based perspective? Answer Selected Answer Detailed prescriptions or rules encourage accountants to number for ways to circumvent the rules rather than laborious to provide useful information. * Question 14 2. 5 out of 2. 5 points In which of the following countries is the use of IFRS not allowed for municipal companies listed on its stock exchanges? Answer Selected Answer United States * Question 15 2. 5 out of 2. 5 points What types of issues cause differences among International Financial Reporting Standards and U. S. GAAP? Answer Selected Answer All of the above may be different between IFRS and U. S. GAAP * Question 16 2. 5 out of 2. 5 points According to the model for Preparation and Presentation of Financial Statements of the IASB, what is the definition of INCOME? Answer Selected Answer Increase in equity (other than from contributions by owners) * Question 17 2. 5 out of 2. 5 points In 1990, the European Commission stopped emergence directives related to accounting. Why? Answer Selected Answer The EU was leaving the formulation of accounting standards up to the IASC. * Question 18 2. 5 out of 2. 5 points If a attach to chooses the revaluation model permitted in IAS 16 for fixed asset measurementAnswer Selected Answer it must update the valuation so that the balance sheet represents plum honor on the balance sheet date. * Question 19 2. 5 out of 2. 5 points Which of the following items is considered to be the most significant impediment to accounting harmo nization? Answer Selected Answer Nationalism * Question 20 2. 5 out of 2. 5 points According to IAS 16 (Property, Plant & Equipment), what is the term used to indicate the amount for which an asset could be exchanged between knowledgeable, involuntary parties in an arms length transaction? Answer Selected Answer Fair market value